Correlation Between TRON and IClick Interactive

Can any of the company-specific risk be diversified away by investing in both TRON and IClick Interactive at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TRON and IClick Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TRON and iClick Interactive Asia, you can compare the effects of market volatilities on TRON and IClick Interactive and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TRON with a short position of IClick Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and IClick Interactive.

Diversification Opportunities for TRON and IClick Interactive

0.72

Correlation Coefficient

TRON  IClick Interactive

Poor diversification

The 3 months correlation between TRON and IClick is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding TRON and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia and TRON is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TRON are associated (or correlated) with IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of TRON i.e., TRON and IClick Interactive go up and down completely randomly.

Pair Corralation between TRON and IClick Interactive

Assuming the 90 days trading horizon TRON is expected to generate 1.15 times more return on investment than IClick Interactive. However, TRON is 1.15 times more volatile than iClick Interactive Asia. It trades about 0.09 of its potential returns per unit of risk. iClick Interactive Asia is currently generating about 0.06 per unit of risk. If you would invest  6.17  in TRON on October 11, 2024 and sell it today you would earn a total of  18.83  from holding TRON or generate 305.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	60.0%
Values	Daily Returns

TRON  vs.  iClick Interactive Asia

TRON

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TRON are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, TRON exhibited solid returns over the last few months and may actually be approaching a breakup point.

iClick Interactive Asia

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iClick Interactive Asia are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, IClick Interactive disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TRON and IClick Interactive

The main advantage of trading using opposite TRON and IClick Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON position performs unexpectedly, IClick Interactive can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IClick Interactive will offset losses from the drop in IClick Interactive's long position.

The idea behind TRON and iClick Interactive Asia pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.